NZTE Presentation for NZPBC Hernando Banal Trade Commissioner - - PowerPoint PPT Presentation

1 NZTE Presentation for NZPBC Hernando Banal Trade Commissioner - Philippines August 2013

New Zealand Trade and Enterprise 2 NZTE is New Zealand’s international business $36 development agency. billion Our role is to help New Zealand businesses grow into international markets. 2

NZTE Key Facts NZTE Quick Facts 3 3,000 Customers • Crown entity, with a private board • 550 people (50% offshore) • 36 international offices • Purpose: International Growth  Providing Services in NZ  Providing Services in market 3

Profile of NZ Exporters 4 Export goods earnings, year to June 2011* $36 260 billion Companies earning >$25m $5 460 Companies billion $5-$25m $3 12,000 billion Companies < $5m Number of New Zealand exporters Source: Statistics New Zealand *Figures are rounded to the nearest billion and are for exports of goods only. 4 (generalised) **NZTE customer numbers include service companies

The Target NZ INC. BUSINESS GROWTH AGENDA 5 Increase the ratio of exports to GDP to 40% by 2025 5½ -7½% p.a. real export growth 5

6 The Philippines Hernando Banal AUGUST 2013

What is the public perception? 7

Or this? 8

Why not this one? 9

Quick Facts 10 Population: 95M Median Age: 22.5 years old Land Area : 290,000Km2, 7,100 islands Religion : 90% Christian , 5% Muslim Main Commercial Centres: • Metro Manila • Cebu • Davao Official Language : ENGLISH

Political History 11

President Noynoy Aquino (PNoy) 12

Stable and Resilient Economic Growth 13 8.0 7.0 6.0 GDP (Q1 2013) 7.8% GDP (Q4 2012) 6.8% 5.0 4.0 3.0 GDP (2012) 6.6% 2.0 1.0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 GDP Headline inflation (Jan – May 2013) 3.0% Headline inflation (2012) 3.2% Source: National Statistical Coordination Board & National Statistics Office

Continuous Inflow of Overseas Filipino Workers Remittances 14 • 2012: US$21.39 Billion ( 6.3% higher that 2011 record) • 2011 OFW remittances crossed the US$20 Billion barrier with full year record of US$20.12 Billion • Remittance drew strength from demand for skilled and professional Filipinos abroad, along with better data capture through banks and financial institutions www.boi.gov.ph

Business Process Outsourcing – 2012 Stats 15 7 7 2 K jobs billion US$ 1 3 . 4 www.bpap.org

Credit Rating Upgrades 16 FROM INVESTMENT GRADE TO BBB- Standard & Poor’s BB- Outlook: World Bank (2010) Stable Government Effectiveness Indicator BBB- Fitch Ratings BB+ Outlook: Stable BBB Japan Credit Rating Agency BBB- (JCRA) Outlook: Stable www.boi.gov.ph

Rich Talent Pool 17 • Educated and English Proficient • Strongly Customer Service Oriented • Highly Trainable with Fast Learning Curve • Adaptable to Universal Cultures Produce over 470,000 college graduates per year across a wide range of disciplines. • IT/Computer Sciences/Engineering - more than 100,000 college graduates per year • In the business field - more than 110,000 graduates per year, • In the medical field - more than 73,000. www.boi.gov.ph

Strategic Business Location in East ASIA 18 The country’s location is a critical entry point to over 500 million people in the ASEAN Market and a natural gateway to the East- Asian economies. • The country is likewise placed at the crossroads of international shipping and airlines. Within Asia, the Philippines • is reachable within 3 to 4 hours by plane. www.boi.gov.ph

GDP Growth in Asia 19 ASEAN-4 (PHILIPPINES, THAILAND, INDONESIA, MALAYSIA) ALL ACCELERATED ABOVE THEIR 10 YEAR GROWTH TREND.

Here, it’s ENGLISH! 20 • Product labels • Legal Documents • Commercial Documents • Traffic signs

ASEAN-Australia-New Zealand Free Trade Agreement 21 Philippine Exports to New Zealand Before 2020 2010 2017 79.8% duty free 84.7% duty free 96.5% duty free 100% duty free Percentage of Tariff Lines duty free

ASEAN-Australia-New Zealand Free Trade Agreement 22 New Zealand Exports to the Philippines Before 2020 2010 2017 1.9% duty free 74.1% duty free 89.7% duty free 99.6% duty free Percentage of Tariff Lines duty free

Online Tariff Finder 23 NZ government website for AANZFTA agreement http://www.asean.fta.govt.nz/ Useful resource on AANZFTA per country Nifty tariff finder for use by both exporters and importers Allows for the use of key words or tariff codes http://www.asean.fta.govt.nz/tariff-finder

Asian Development Bank 24 - ADB Headquarters located in Manila, with 30 Resident Missions worldwide - Vision: An Asia and Pacific region free of poverty - Strategy 2020 lists down Five Core Operational Areas: Infrastructure, Environment, Regional Cooperation and Integration, Finance Sector, and Education - Provides Loan and Technical Assistance to the Asia and the Pacific region www.adb.org

NZ Top Consultants for Technical Assistance 25 www.adb.org

NZ Top Consultants for Loan Projects 26 www.adb.org

NZ Trade to the Philippines 27 • Export value : $700M • 15 th Largest Export Market (out of 230 countries) • 4 th Largest export market for Dairy • 80% Food & Beverage (65% is Dairy products) • 9% Wood related products • 4% Services • (Relatively) a Problem FREE trade partnership • 2012 Statistics

The Filipino perception of New Zealand 28 • Milk • Sheep • Lord of the Rings / Breath-taking sceneries • Geothermal Energy • Geotechnical experts • Secured payment systems • It’s a place far far away…

Challenges - set your expectations right and be prepared 29 • Low awareness between our two economies • Do your homework – taxation, labour code, registrations, competition • Red T apes • Absence of direct shipping and air services • Get the right local partner /adviser/consultant • NZ and PHL consumer markets are not exactly the same • Security in certain hot spots • Corruption is a dangerous game • Government projects – can be affected by change of administration – must be ready for the long haul

Asian Development Bank – Events 30 October 2013 ADB- Business Opportunities Seminar - Auckland and Wellington March 2014 NZ Trade Mission to the ADB, Business Opportunities Fair – Manila, Philippines

NZTE Projects 31 April 2014 Experience New Zealand/ F&B Trade Fair/East Asia Food Connection – Manila, Philippines TBC Renewable Energy Workshop – Manila, Philippines

NZTE Manila Team 32 Hernando Banal Trade Commissioner Maricon Popanes-Lim Amy Colayco Business Development Manager Business Development Manager Alejandro Jimenez Emelita Robles Driver/Admin Assistant Office Manager

Geothermal Workshop 2012 , Makati City 33

ADB Mission led by Minister Craig Foss , March 2013 34

Experience NZ 2013 F&B Trade Fair, Glorietta Mall Makati 35

Experience NZ 2013 36

Experience NZ 2013 37